Sec. 1304. Repeal of deduction for personal casualty losses
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Section 165(c) is amended by inserting and at the end of paragraph (1), by striking ; and at the end of paragraph
(2)and inserting a period, and by striking paragraph (3). Section 165(h) is amended to read as follows: If the personal casualty gains for any taxable year exceed the personal casualty losses for such taxable year— all such gains shall be treated as gains from sales or exchanges of capital assets, and all such losses shall be treated as losses from sales or exchanges of capital assets. For purposes of this subsection— The term personal casualty loss means any loss of property not connected with a trade or business or a transaction entered into for profit, if such loss arises from fire, storm, shipwreck, or other casualty, or from theft. The term personal casualty gain means the recognized gain from any involuntary conversion of property which is described in subparagraph
(A)arising from fire, storm, shipwreck, or other casualty, or from theft. . Subsection
(i)of section 165 is amended— in paragraph (1)— by striking (as defined by clause
(ii)of subsection (h)(3)(C)) , and by striking (as defined by clause
(i)of such subsection) , by striking (as defined by subsection (h)(3)(C)(i) in paragraph (4), and by adding at the end the following new paragraph: For purposes of this subsection— The term federally declared disaster means any disaster subsequently determined by the President of the United States to warrant assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The term disaster area means the area so determined to warrant such assistance. . Section 165 is amended by striking subsection (k). Section 165(l)(1) is amended by striking a loss described in subsection (c)(3) and inserting an ordinary loss described in subsection (c)(2) . Section 165(l) is amended— by striking paragraph (5), by redesignating paragraphs (2), (3), and
(4)as paragraphs (3), (4), and (5), respectively, and by inserting after paragraph
(1)the following new paragraph: No election may be made under paragraph
(1)with respect to any loss on a deposit in a qualified financial institution if part or all of such deposit is insured under Federal law. With respect to each financial institution, the aggregate amount of losses attributable to deposits in such financial institution to which an election under paragraph
(1)may be made by the taxpayer for any taxable year shall not exceed $20,000 ($10,000 in the case of a separate return by a married individual). The limitation of the preceding sentence shall be reduced by the amount of any insurance proceeds under any State law which can reasonably be expected to be received with respect to losses on deposits in such institution. . Section 172(b)(1)(E)(ii), prior to amendment under title III, is amended by striking subclause
(I)and by redesignating subclauses
(II)and
(III)as subclauses
(I)and (II), respectively Section 172(d)(4)(C) is amended by striking paragraph
(2)or
(3)of section 165(c) and inserting section 165(c)(2) . Section 274(f) is amended by striking in the heading thereof. casualty losses, Section 280A(b) is amended by striking in the heading thereof. casualty losses, Section 873(b), as amended by the preceding provisions of this Act, is amended by striking paragraph
(1)and by redesignating paragraphs
(2)and
(3)as paragraphs
(1)and (2), respectively. Section 504(b) of the Disaster Tax Relief and Airport and Airway Extension Act of 2017 is amended by adding at the end the following new paragraph: This subsection shall be applied without regard to the amendments made by section 1306 of the Tax Cuts and Jobs Act . . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.